I saw that most of the time comprehensive is reported net of tax.
I am confused since I thought other comprehensive income consists only of unrealized gains and loss, therefore there should be no effect on tax?
I am asking because on form 5471, schedule C, we need to fill out income tax expense (benefit) related to other comprehensive income.
So, other comprehensive income is not reported net of tax.
What am I missing here? Thanks for your help.
I am confused since I thought other comprehensive income consists only of unrealized gains and loss, therefore there should be no effect on tax?
I am asking because on form 5471, schedule C, we need to fill out income tax expense (benefit) related to other comprehensive income.
So, other comprehensive income is not reported net of tax.
What am I missing here? Thanks for your help.